Exam 2: Analyzing and Recording Business Transactions

Office equipment was purchased for $2,400 on account from Office Express.The journal entry would include a:

Expenses paid in advance such as rent and insurance are classified as prepaid expenses.Into what category are they placed?

Motor Work,Inc.'s trial balance contains the following balances: Cash $367 Accounts Payable $267 Revenue $632 Accounts Receivable $429 Expenses $103 What is the amount of total debits for this trial balance?

The third step in analyzing a transaction is to determine:

Dividends,Accounts Receivable,and Buildings have normal balances of:

The account used to record payment of a telephone bill immediately after receiving it,would be a(n):

An account numbered 321 would be considered a Stockholders' Equity account as it begins with a 3.

Only the ________ accounts from the trial balance will be used to prepare the Income Statement.

Accounts that increase on the credit side are Liabilities,Common Stock,Revenues and Retained Earnings (LCR).

Oceans,Inc.collected $400 from one of its customers for payment on their account.The journal entry would include a:

The Stockholders' Equity section would include accounts such as Retained Earnings and Revenues.

Office Furniture,Wages Payable and Dividends have normal balances of:

T-accounts aid in separating:

A T-account has a $759 credit balance.This account is most likely NOT:

The posting reference column of the general ledger shows the sources of the transferred information.

Journalizing is the transfer of information from the general journal to the general ledger.

The first step in analyzing a transaction is to determine:

A T-account has which of the following three major parts?

If the total debits and total credits on a trial balance do not equal,redo the addition of the debit and credit columns.

Once the trial balance is correct,the next step is to prepare the financial statements,beginning with the Income Statement.